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1
Historical Views of
Management
• We will examine the historical roots of
management theory and practice and
attempt to establish a connection
between the theoretical foundations of
modern management and the concepts
advanced in subsequent chapters of
your text.
2
Alfred P. Sloan
• "My Years With General Motors"
The professional managers are: to manage
the facts, not opinions; to put the strengths
of people to work; to set the performance
example for others, and serve as mentor;
to use dissent and conflict to positive
advantage, and to always accept a
manager's responsibility to be a "servant" of
others.
3
Evolution of Management
Thought
• Effective management played a key role
in the construction of the pyramids, the
use of communication and control of the
Roman Empire, and the legal
framework of commerce in 14th century
VENICE.
4
Evolution of Management
Thought
• The most significant historical point of
reference in the evolution of
management was the advent of the
Industrial Revolution.
• By the turn of the 20th century the
science and practices of management
were on a rapid and continuing path of
development.
5
Major Schools of Thought
• Classical - A focus on developing universal
principles for use in various management
situations.
• Human Resource - A focus on human
needs, the work group, and the role of social
factors in the workplace.
• Quantitative or Management Science
A focus on the use of mathematical
techniques for management problem-
solving.
6
Major Schools of Thought
• Modern Approach
A focus on total systems and contingency
thinking, and an awareness of global
developments in management.
• Continuing Directions
Emphasis on quality and performance
excellence, global awareness, and leadership
roles for a new management.
7
CLASSICAL APPROACHES
• Basic Assumption: People Are Rational
People will rationally consider the
opportunities available to them and do
whatever is necessary to maximize their
economic gain.
– Scientific Management
– Administrative Principles
– Bureaucratic Organization
8
Scientific Management
(Frederick Taylor)
• Develop a science for every job, including
rules of motion, standardized work
implements, and proper working conditions.
• Carefully select workers with the right abilities
for the job.
• Carefully train these workers and provide
proper incentives.
• Provide these workers with the necessary
support.
9
Administrative Principles
(Henry Fayol)
• Rules of Mgmt. (5)
– Foresight
– Organization
– Command
– Coordination
– Control
• Principles of Mgmt.
– Division of work
– Scalar Chain
– Unity of Command
– Unity of Direction
10
(Mary Follett)
• Dynamic Administration
– Believed that groups were mechanisms
through which diverse individuals could
combine their talents for a greater good.
– Placed a high value in the power of
Human Cooperation and pioneered the
concepts and practices of such issues
as Employee-Ownership, Systems
Theory, and Social Responsibility.
11
Bureaucratic Organization
(Max Weber)
• An ideal, intentionally rational, and very
efficient form of organization founded on
principles of logic, order, and legitimate
authority.
– Clear Division of Labor
– Well Defined Hierarchy of Authority
– Formal Rules and Procedures
– Impersonality
– Careers Based on Merit
12
Human Resource Approaches
• Basic Assumption: People are Social and
Self-Actualizing.
• The Hawthorne Studies
– Established the human resource as an essential concern for
management, and one that has unique properties.
– We learned that the nature of the Work Group should be
important.
– We learned about the tendency of people who are singled
out for special attention to perform as anticipated merely
because of expectations created by the situation.
13
Human Resource Approaches
• The Human Relations Movement
– Assertion is that managers who use good human
relations in the workplace will achieve productivity.
– This movement has evolved as the field of
Organizational Behavior - the study of
individuals and groups in organizations.
14
Principle Human Relation
Theories
• Maslow - Theory of Human Needs
People act to satisfy "deprived" needs - needs
for which a satisfaction "deficit" exists.
Hierarchy of Needs
Self-Actualization
Esteem
Social
Safety
Physiological
15
McGregor's
Theory X and Theory Y
• Theory X Managers Assume Subordinates
– Dislike Work
– Lack Ambition
– Are Irresponsible
– Resist Change
– Prefer to be Led
16
McGregor's
Theory X and Theory Y
• Theory Y Managers Assume Subordinates
– Willing to Work
– Capable of Self-Control
– Willing to Accept Responsibility
– Capable of Imagination, Ingenuity,
Creativity.
– Capable of Self-Direction
17
Argyris
Theory of Personality and Organization
• Points out that some insights of the Classical
Approach are inconsistent with the mature
adult personality.
• Suggests that managers who treat people
positively and as responsible adults will
achieve productivity.
• Advises the expansion of job responsibilities,
allow for more task variety, and the
adjustment of supervisory styles to include
more participation and better human
relations.
18
Quantitative Approaches
• Assumption: Applied Mathematics Can Solve
Management Problems
Techniques and Applications
Mathematical Forecasting
Linear Programming
Inventory Modeling
Network Models
Queuing Theory
Simulations
19
Modern Approaches
• Assumption: People are Complex
– Modern Approaches to management respect
the Classical, Human Resources, and
Quantitative schools.
– But they recognize that no one approach
applies universally in all situations, or the
exclusion of the others.
– This Course Is Based On The "Modern
Management Approaches"
20
Modern Approaches
• Systems View
The organization is seen as a
collection of interrelated parts that
function together to achieve a
common purpose.
An Open System interacts with its
environment and a Closed one does not.
21
Contingency Thinking
• Contingency Approaches to
management assert that there is no one
best way to manage, and that what is
best depends in any given circumstance
on the nature of the situation.
• In short the best way depends upon the
situation.
22
Continuing Management
Themes
• Quality and Performance Excellence
• Global Awareness
• Political Sensitivity
• Leadership
• Technology
• Life-long Commitment to Learning

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Historical Views of Management and Evolution of Management Thought

  • 1. 1 Historical Views of Management • We will examine the historical roots of management theory and practice and attempt to establish a connection between the theoretical foundations of modern management and the concepts advanced in subsequent chapters of your text.
  • 2. 2 Alfred P. Sloan • "My Years With General Motors" The professional managers are: to manage the facts, not opinions; to put the strengths of people to work; to set the performance example for others, and serve as mentor; to use dissent and conflict to positive advantage, and to always accept a manager's responsibility to be a "servant" of others.
  • 3. 3 Evolution of Management Thought • Effective management played a key role in the construction of the pyramids, the use of communication and control of the Roman Empire, and the legal framework of commerce in 14th century VENICE.
  • 4. 4 Evolution of Management Thought • The most significant historical point of reference in the evolution of management was the advent of the Industrial Revolution. • By the turn of the 20th century the science and practices of management were on a rapid and continuing path of development.
  • 5. 5 Major Schools of Thought • Classical - A focus on developing universal principles for use in various management situations. • Human Resource - A focus on human needs, the work group, and the role of social factors in the workplace. • Quantitative or Management Science A focus on the use of mathematical techniques for management problem- solving.
  • 6. 6 Major Schools of Thought • Modern Approach A focus on total systems and contingency thinking, and an awareness of global developments in management. • Continuing Directions Emphasis on quality and performance excellence, global awareness, and leadership roles for a new management.
  • 7. 7 CLASSICAL APPROACHES • Basic Assumption: People Are Rational People will rationally consider the opportunities available to them and do whatever is necessary to maximize their economic gain. – Scientific Management – Administrative Principles – Bureaucratic Organization
  • 8. 8 Scientific Management (Frederick Taylor) • Develop a science for every job, including rules of motion, standardized work implements, and proper working conditions. • Carefully select workers with the right abilities for the job. • Carefully train these workers and provide proper incentives. • Provide these workers with the necessary support.
  • 9. 9 Administrative Principles (Henry Fayol) • Rules of Mgmt. (5) – Foresight – Organization – Command – Coordination – Control • Principles of Mgmt. – Division of work – Scalar Chain – Unity of Command – Unity of Direction
  • 10. 10 (Mary Follett) • Dynamic Administration – Believed that groups were mechanisms through which diverse individuals could combine their talents for a greater good. – Placed a high value in the power of Human Cooperation and pioneered the concepts and practices of such issues as Employee-Ownership, Systems Theory, and Social Responsibility.
  • 11. 11 Bureaucratic Organization (Max Weber) • An ideal, intentionally rational, and very efficient form of organization founded on principles of logic, order, and legitimate authority. – Clear Division of Labor – Well Defined Hierarchy of Authority – Formal Rules and Procedures – Impersonality – Careers Based on Merit
  • 12. 12 Human Resource Approaches • Basic Assumption: People are Social and Self-Actualizing. • The Hawthorne Studies – Established the human resource as an essential concern for management, and one that has unique properties. – We learned that the nature of the Work Group should be important. – We learned about the tendency of people who are singled out for special attention to perform as anticipated merely because of expectations created by the situation.
  • 13. 13 Human Resource Approaches • The Human Relations Movement – Assertion is that managers who use good human relations in the workplace will achieve productivity. – This movement has evolved as the field of Organizational Behavior - the study of individuals and groups in organizations.
  • 14. 14 Principle Human Relation Theories • Maslow - Theory of Human Needs People act to satisfy "deprived" needs - needs for which a satisfaction "deficit" exists. Hierarchy of Needs Self-Actualization Esteem Social Safety Physiological
  • 15. 15 McGregor's Theory X and Theory Y • Theory X Managers Assume Subordinates – Dislike Work – Lack Ambition – Are Irresponsible – Resist Change – Prefer to be Led
  • 16. 16 McGregor's Theory X and Theory Y • Theory Y Managers Assume Subordinates – Willing to Work – Capable of Self-Control – Willing to Accept Responsibility – Capable of Imagination, Ingenuity, Creativity. – Capable of Self-Direction
  • 17. 17 Argyris Theory of Personality and Organization • Points out that some insights of the Classical Approach are inconsistent with the mature adult personality. • Suggests that managers who treat people positively and as responsible adults will achieve productivity. • Advises the expansion of job responsibilities, allow for more task variety, and the adjustment of supervisory styles to include more participation and better human relations.
  • 18. 18 Quantitative Approaches • Assumption: Applied Mathematics Can Solve Management Problems Techniques and Applications Mathematical Forecasting Linear Programming Inventory Modeling Network Models Queuing Theory Simulations
  • 19. 19 Modern Approaches • Assumption: People are Complex – Modern Approaches to management respect the Classical, Human Resources, and Quantitative schools. – But they recognize that no one approach applies universally in all situations, or the exclusion of the others. – This Course Is Based On The "Modern Management Approaches"
  • 20. 20 Modern Approaches • Systems View The organization is seen as a collection of interrelated parts that function together to achieve a common purpose. An Open System interacts with its environment and a Closed one does not.
  • 21. 21 Contingency Thinking • Contingency Approaches to management assert that there is no one best way to manage, and that what is best depends in any given circumstance on the nature of the situation. • In short the best way depends upon the situation.
  • 22. 22 Continuing Management Themes • Quality and Performance Excellence • Global Awareness • Political Sensitivity • Leadership • Technology • Life-long Commitment to Learning